Answers
1. Cash received from customers in Dec 2017 (a) = 387000.
Accounts receivable as on Nov 30th 2017 (b) = 139000
Cash Received for services rendered in Dec 2017(c) = (a-b) = 248000.
Accounts receivable as on Dec 30th 2017 (d) = 141000.
Value of Services rendered In Dec 2017 = (c+d) = $ 389000 (under accrual basis).
Balance in Inventory Account decreased by 39000, That means we have utilised inventory worth $ 39000 in Dec 2017.
Gross Profit = 389000-39000 =$ 350000.
The fact that Accounts payable have reduced by $ 19000 will not have any bearing on Gross Profit as it a reduction in liability, therefore an appropriation of cash received towards payables, but not a revenue or expense.
2. As Revsine Co have formalized a plan to dispose of a Segment of its business by the reporting date, the same should be reported in the financial statement as "Discontinued Operations"
Total realized Loss in the Year 2017 = $ 300000 + $ 200000 = $ 500000.
Tax Rate = 30%.
Loss to be reported under Discontinued operations = 500000* (1-0.30) = $ 350,000\-
The fact that the company is expected to gain on sale on 31st March 2018 and is expecting a gain on sale will have no bearing on the reporting for the year 2017.
However the same can be informed to the stakeholders in an appropriate way.
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